Dinesh Engineers withdraws IPO
The present market conditions have been troubling listed companies. But, now even the companies lined up for listing are facing the wrath of the markets. The intense correction in the last month has been a dampener for all the IPOs which hit the market during the time. IRCON IPO opened 13% down despite of being oversubscribed 9 times. Fast growing HFC like Aavas Financiers couldn’t get fully subscribed despite of all major brokerages giving a subscription call. The fairly priced Garden Reach Shipbuilders with an excellent order book had to extend the subscription period and change the price. And the most recent example is Dinesh Engineers IPO. The company withdrew its IPO on October 3rd due to weak market conditions.
Dinesh Engineers is a communication infrastructure company which opened its public offer on September 28th with a price band of Rs 183-185 per share. The company expected to raise Rs 185 crores for business expansion. But, it could only get subscription for only 17% of the shares on offer by the end of Wednesday. Hence, the company decided to inform SEBI about the withdrawal of the IPO. The investors who did bid for the IPO would receive their money back. Given the kind of uncertainty in the markets, there are high chances that many companies would look to postpone their IPOs post the general elections.
You can follow us on Facebook to receive all the updates and new posts : https://www.facebook.com/ShareMktGuru/
Disclaimer: I am not a SEBI registered analyst and not advising anyone to buy. The purpose of this article is to share my viewpoint about fundamentals and the future prospects of the company. So, please do not consider this as an investment tip. Talk to your financial advisor before taking any investing call.
User Review( vote)
Hi, I am Azhar, a management graduate from IIM Bangalore. I work as a manager in a FMCG firm. From college days, I had a lot of interest in equity markets. My passion for teaching led me to setup this site to educate retail investors about stock markets investments. Looking forward to learn and grow with you. Happy investing !!